How the maturity payment amount is calculated
The maturity payment amount will be determined as follows:
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If the Final Index Level is greater than the Initial Index Level, the maturity payment amount per security will equal the lesser of:
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(i)
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$1,000 plus
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(ii)
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the maximum maturity payment amount
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If the Final Index Level is equal to or less than the Initial Index Level but greater than or equal to the Buffer Level,
the maturity payment amount per security will equal the issue price of $1,000.00
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If the Final Index Level is less than the Buffer Level, the maturity payment amount per security will equal:
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$1,000 -
In such a case, you will lose up to 92.50% of your principal.
S&P 500® Index daily closing levels*
*The graph above sets forth the daily closing levels of the Index for the period from January 1, 2016 to November 26, 2021. The closing level on November 26, 2021 was 4,594.62. The
historical performance of the Index is not an indication of its future performance during the term of the securities.
Selected risk considerations
The risks set forth below are discussed in detail in the “Risk Factors” section in the accompanying preliminary pricing supplement. Please review those
risk disclosures carefully.
Risks Relating to the Terms and Structure of the Securities
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Your investment may result in a loss of up to 92.50% of your principal
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You will not receive interest payments on the securities
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Your yield may be lower than the yield on a standard debt security of comparable maturity
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Your return is limited and will not reflect the return of owning the common stocks represented by the Index
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The amount to be paid at maturity is not linked to the level of the Index at any time other than the valuation date
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Owning the securities is not the same as owning the common stocks represented by the Index
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The securities will be debt obligations of Royal Bank of Canada. No other company or entity will be responsible for payments under the securities
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The tax treatment of the securities is uncertain and gain on the securities may be treated as ordinary income under the constructive ownership rules
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Risks Relating to the Secondary Market for the Securities
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There may not be an active trading market for the securities
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Many factors affect the market value of the securities
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Risks Relating to the Index
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Changes that affect the Index will affect the market value of the securities and the maturity payment amount
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We have no affiliation with the sponsor of the Index and will not be responsible for any actions taken by the sponsor
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Historical levels of the Index should not be taken as an indication of the future levels of the Index during the term of the securities
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Risks Relating to the Initial Estimated Value of the Securities
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Our initial estimated value of the securities will be less than the initial public offering price
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The price, if any, at which you may be able to sell your securities prior to maturity may be less than the initial public offering price and our initial estimated value
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The initial estimated value of the securities will be an estimate only, calculated as of the time the terms of the securities are set
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Risks Relating to Conflicts of Interest
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Hedging transactions may affect the return on the securities
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Potential conflicts of interest could arise
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The calculation agent may postpone the valuation date and, therefore, determination of the Final Index Level and the maturity date if a market disruption event occurs on the valuation date
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There are potential conflicts of interest between you and the calculation agent
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Not suitable for all investors
Investment suitability must be determined individually for each investor. The securities described herein are not a suitable investment for all investors. In particular, no investor should
purchase the securities unless they understand and are able to bear the associated market, liquidity and yield risks. Unless market conditions and other relevant factors change significantly in your favor, a sale of the securities prior to
maturity is likely to result in sale proceeds that are substantially less than the initial public offering price per security. Royal Bank of Canada, Wells Fargo Securities, LLC and their respective affiliates are not obligated to purchase the
securities from you at any time prior to maturity.
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you
should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the
SEC website at www.sec.gov. Alternatively, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling your financial advisor or by calling Royal Bank of Canada at
toll-free 1-877-688-2301.
Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, members SIPC, separate registered
broker-dealers and non-bank affiliates of Wells Fargo & Company.
Consult your tax advisor
Investors should review carefully the accompanying preliminary pricing supplement, prospectus supplement and prospectus and consult their tax advisors regarding the application of the
U.S. federal income tax laws to their particular circumstances, as well as any tax consequences arising under the laws of any state, local or foreign jurisdiction.